It’s no secret that personal credit scores are a barometer of financial strength. The better your score, the easier (and cheaper) it is to get things like a mortgage or car loan. But, did you know small business owners have a separate business credit score for their company?

The two scores share commonalities, both impact a business owner’s ability to get financing, but they also have surprising differences.

While personal and business credit scores are both influenced by region, new data from Nav.com reveals other factors, like local policy climate, can impact business credit scores. Nav used data from 15,500 of its small business customers to calculate the average business credit score for each state to find the top 10.

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Business Credit Score 2017 Rankings

So, what is a solid business score? Unlike personal credit scores, the business credit score range is much smaller. Most models range from 0 to 100. The higher the score, the better. Each of the 10 states with the best business credit scores have scores of 45 or above — putting them in the low- to medium-risk range. Business owners with scores in this range will find it easier to qualify for loans and trade credit with more favorable terms.

If you own a business in a northern state, your business credit score is more likely to outshine the rest of the country. Eight of the 10 states with highest average business credit scores are located where snow can regularly fly, with one “roll tide” exception.

9. Maine: 45.7

Maine business owners enjoy both stronger than average business and personal credit scores. This is a winning formula for success, as both scores can be used by business lenders to get business financing. Its strong business credit score flies in the face of the SBE Council’s low, number 44 policy climate ranking, which is a surprising, recurring theme in our list .

8. Alaska: 45.7

The “great white north” trend continues, as Alaskan business owners maintain higher business credit scores than most of the country. Unlike others on the list, Alaska’s average personal credit score of 668 falls below the national average and it’s settled in the middle of the pack when it comes to policy climate.

7. Wisconsin: 46.1

It should be easier for Wisconsin entrepreneurs to find the cheese they need to run and grow their business thanks to a solid business credit score. Their residents also rank fifth in personal credit scores, thanks in part to having the lowest credit card delinquency rate according to TransUnion data. The state ranks below average for policy climate, but it doesn’t seem to be holding Wisconsin back.

6. Utah: 46.3

Talk about a state with business tailwinds. Utah’s business credit score is among the nation’s best, its personal credit score of 679 is above average, and its policy climate is comes in at No. 11. It’s no wonder why the beehive state consistently ranks tops in business growth.

5. Oregon: 47.3

Like others on the list, Oregon shows that strong personal credit health can translate to good business credit scores. The state’s top five ranking means its business owners with strong scores can negotiate better payment terms for goods and services from suppliers, like net-60 or net-90 day terms. Like Maine, Oregon ranks very low on the SBE Council’s policy index rating, but its business owners’ credit scores are thriving.

4. Alabama: 47.6

Alabama is the only southern state that cracked the top 10 list—although it has the 5th-worst personal credit score average in the country. Some of this can be explained by Alabama’s strong No. 9 rank for policy measures and costs that impact small business. Strong business credit scores will help most Alabaman companies, but for younger companies (under 2 years in business), business lenders will heavily weigh personal credit scores.

3. Nevada: 48.8

Nevada hit the business credit score jackpot, beating out all but two other states in the nation. It also ranks number one in the SBE Council’s policy index, which should mean that business owners there are less burdened by regulations and taxes. Despite those solid rankings, and reflecting the boom or bust persona of Las Vegas, it also has the third-worst personal credit in the country. For business owners with strong enough business credit scores and financials, they may be able to overcome personal credit flaws when applying for lending.

2. Iowa: 49.2

Iowa may be first in the nation to pick the Presidential candidates, but it narrowly missed out on pole position for business credit. Business owners here also have the added benefit of strong personal credit, where it ranks in the top 10. Having strong credit scores in both categories can help the state’s entrepreneurs qualify for the money they need to expand — which should come in handy as Iowa’s economy is predicted to expand through 2017.

1. Vermont: 51.7

Like maple syrup on pancakes, Vermont’s business credit is sweet. Its average score takes the top spot in the country and it is the only state that cracks the 50 mark, signifying a lower credit risk. Again, we see that the SBE Council’s policy index ranking doesn’t necessarily correlate with business credit health, as Vermont ranks near the bottom on their list. The state’s stellar business credit score, combined with personal credit that ranks No. 2 in the country, makes for business success. Entrepreneurs in the Green Mountain State with strong business credit are most likely to secure affordable funding, with the best terms.

Considering U.S. small businesses produce 46% of GDP, their success can ripple across the entire economy. That success typically depends on access to affordable capital. One way you can set yourself up to qualify for the best funding is by maintaining a strong business credit profile. Low scores are the number one reason business financing applications get denied. You can get your free business credit scores, along with your personal credit scores, by visiting Nav.com.

Editor’s note: You can get a snapshot of your personal credit by taking a look at your credit report summary on Credit.com. This provides you with your two free credit scores, updated every 14 days, plus a review of the five key areas that affect your scores.

Image: PIKSEL

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Jared Proctor is the head of content at Nav, which provides business owners with simple tools to build business credit and access to lending options based on their credit scores and needs. He has over fifteen years of financial services experience and written extensively about small business issues.

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